The root cause of loss: six fatal investment misunderstandings!
The reasons for losing money can be attributed to these six fatal misunderstandings. Avoid these pitfalls and your investment journey will be smooth:
Too much short-term thinking
Many investors only focus on the short-term fluctuations in front of them, but ignore the long-term trend. Real success lies in taking a long-term perspective, focusing on the long-term and supplemented by the short-term and medium-term.
Chasing up and killing down
When the market is hotly discussing a certain currency, blindly follow the trend to buy. Once the price falls, holding the loss and waiting for the unwinding, it often ends up with a worse floor price. Chasing up and killing down not only makes you miss the rise, but also makes it easier to fall into deep losses.
Lack of cognition
Listen to rumors, blindly follow the purchase, and completely ignore fundamental analysis. An investment method without in-depth understanding will only make your funds ruthlessly harvested.
Impetuous heart
The mentality of being eager to get rich overnight ignores the complexity of the market. Once a loss occurs, you are unwilling to face reality and start to make excuses and blame others. Real investors should stay calm and have a stable mentality.
Unlearned
Investing is a process of continuous learning. Lack of learning and practice will only put you in a passive situation and become a prey of the market.
Lack of complete investment philosophy
Without a clear plan and strategy before investing, you cannot effectively respond to market fluctuations. Formulating purchase strategies, position allocation, stop loss and stop profit plans, etc. are the keys to success.
Investment is not just a technology, but also a game of thinking. Avoid these fatal misunderstandings to make your investment path more stable. Want to learn more about practical experience and market analysis? Follow Lao Chen, update practical strategies every day to help you invest without worries!
